Changes sought to extend sewer payments

Friday

The Barnstable Town Council will be asked to seek special legislation to allow those hit with betterments to extend them over a longer period and at level annual payments.

30-year payback, level payments among options

The Barnstable Town Council will be asked to seek special legislation to allow those hit with betterments to extend them over a longer period and at level annual payments.

Speaking on the Oct. 27 edition of Barnstable This Morning, Finance Director Mark Milne said that the legislation is aimed at changing the options for property owners to apportion sewer betterments assessed against their properties.

Such legislation has been discussed since the time when the Stewarts Creek and other projects were brought to the town council two years ago. The Comprehensive Financial Advisory Committee took a look at the proposal at its September meeting. That draft contemplated making the change retroactive to April 7, 2011, which would include the betterments for Stewarts Creeks.

The legislation would be Barnstable specific, not a change with state-wide application. It is also sewer specific, and does not seek to change the way betterments for private roads are apportioned.

The only option for towns is to provide for level principal payments, leaving a declining interest payment over the term of the betterment. The maximum length for a betterment is also capped at 20 years. The change would allow towns to treat betterments similar to mortgages, where the principal and interest paid monthly changes but fixes the monthly total.

Also like a mortgage, the longer term would mean a higher level of interest paid over the course of the betterment, Milne said.

These changes, should they be submitted and approved, would provide another set of options to those affected by betterments. Milne said that homeowners have the ability to choose the term of their betterments up to 20 years, but could opt for five, 10 or anything in the middle. He said the special legislation would expand the range of options for property owners to best suit their financial needs.

Using the $8,340 betterment expected for the Stewarts Creek projects, Milne said that a 20-year betterment under the existing law would represent $751 in the first year, with declining interest payments. A 30-year betterment under the same terms would be $612 in the first year, with declining interest. Add in a level payment option and it drops to a fixed $482.

The town council is expected to see the special legislation in November.

A bill to dedicate the additional rooms and meals taxes authorized by the council last year to fund wastewater infrastructure has made it though the senate and is now awaiting House approval.

This bill was initially filed in 2010, but failed to make it through both the House and Senate before the end of the session.